SSG is currently operating out of 6 900 square meters of leased space on the property with a current lettable area of 4 300 square meters (CLA). The facility opened in 1993 and is operated under the City Self-Storage brand. The facility has an occupancy above 90% and achieves an average rent income of NOK 3 400 per CLA per year.
Adamstuen Garasjer AS has a gross area of 13 000 square meters, and operates an underground garage in addition to rental of space to City Self-Storage Norge AS. It is SSG’s intention to expand its self-storage offering throughout the entire building.
“The acquisition of General Birchs gate 16 is our largest individual freehold acquisition to-date. The property is a good strategic and geographical fit for Self Storage Group due to its size and unique location in central Oslo. With this investment we convert a profitable leasehold interest into freehold ownership, in line with our strategy to grow our freehold portfolio and to further strengthen our position as market leader in the Oslo region. General Birchs gate is the largest self-storage facility in Norway, and with this acquisition we have a potential to increase CLA from 4 300 to 8 100 m2 by converting the remaining areas of the property into self-storage,” says Fabian Søbak, CEO of Self Storage Group.
General Birchs gate 16, which is operated under the City Self-Storage concept, is located close to the city center in an area with a higher income demographic. There is limited supply of self-storage space and significant entry barriers in the Central- and Western part of Oslo.
“The demand for self-storage in Norway is growing, as urbanization and smaller living spaces are resulting in an increased need for external storage solutions. SSG has the benefits of scale, strong brands and the unique combination of a customer-oriented and automated business model. This acquisition enables us to grow our footprint in the strategically important central Oslo area," says Steven Skaar, Chairman of Self Storage Group.
The transaction has a value of NOK 250 million and is expected to be closed during the first quarter of 2021. The acquisition is financed with a new bank loan from Handelsbanken and Danske Bank.